Definition
Symmetrical Triangle shows both higher lows and lower highs, creating a narrowing range. It can break either direction, so it's a continuation pattern in the direction of the prior trend. Wait for breakout confirmation before trading.
Formula
Price Target = Breakout Point ± Triangle Height at widest point
Example
A triangle forms with highs at $50,$48,$46 and lows at $40,$42,$44. The $10 widest range projects $56 on upside break or $34 on downside break.
FAQ
What is Symmetrical Triangle?
A neutral pattern with converging support and resistance lines.
How do you calculate Symmetrical Triangle?
A common formula for Symmetrical Triangle is: Price Target = Breakout Point ± Triangle Height at widest point
Why is Symmetrical Triangle important?
Symmetrical Triangle helps investors evaluate chart patterns and make more informed decisions.